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Story perspectives

Q2 Economic Data Reveals Slowdown Amid Labor Challenges

8/5/2025

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Story summary
  • Upcoming U.S. productivity and unit labor cost data for Q2 will indicate economic growth trends.
  • Q1 experienced the first labor productivity decline since mid-2022, alongside significant job growth reduction.
  • GDP growth averaged 1.2% in the first half of the year, signaling a slowdown.
  • Gross private investment dropped by 15.6% in Q2, affecting overall productivity.
  • Supply-side constraints may impede recovery, despite possible Federal Reserve rate cuts.